4% of the country's gross domestic product (GDP). The budget aims to drive economic growth to 6% next year by maximizing benefits from resource earnings and focusing on key sectors such as food and energy self-sufficiency, domestic industrial development, and education. The proposed budget will remain expansive and prioritize eight key programs.
President Subianto also announced plans to establish a commodity exchange for Indonesia's strategic commodities, with the goal of launching operations on January 1, 2027. This move is part of the government's efforts to exert greater control over the country's natural resources and set prices for its main commodity exports. According to President Subianto, Indonesia wants to develop its own reference price for major commodity exports.
He emphasized that the country should not solely rely on others to determine the prices and profits of its commodities. Instead, Indonesia aims to become a price-setter for global commodities. If buyers do not agree with the prices set by Indonesia, the country is willing to keep minerals like nickel, tin, and coal in the ground.
In addition to the budget proposal, President Subianto mentioned that an arm of Indonesia's sovereign wealth fund, Danantara, is being prepared to handle long-term development projects that are not commercially viable in the short term but are crucial for the country's growth. This arm, called the Danantara Development Management Fund, will invest in projects such as the giant sea wall project on Java island. The government also plans to revise its citizenship law to allow some Indonesians to hold dual nationality for the first time.
This move is expected to have significant implications for the country's population and economy. The proposed budget and commodity management plans are part of President Subianto's efforts to drive economic growth and achieve self-sufficiency in key sectors. With a focus on domestic development and strategic resource management, Indonesia aims to reduce its reliance on external factors and become a more prominent player in the global economy.
As the budget proposal moves forward, it will be subject to parliamentary approval and scrutiny. The outcome of this process will have a significant impact on Indonesia's economic trajectory and its ability to achieve the targeted growth rate of 6% in 2027.
